Proposal 1		Proposal 2
Cost	950 000		1 150 000
Installation costs	50 000		95 000
Maintenance costs	-		30 000
Estimated life span	5 years		5 years
Net cash flows	300 000		95 000
Market value at the end of 5 years	300 000		450 000
Tax depreciation	15% on a straight line		15% on a straight line
Tax rate	28%		28%
Cost of capital	8%		8

1. Compute NPV and IRR for Project 1 and Project 2